First Signs a Polished Diamond Price Correction May Be Coming

(IDEX Online News) – Just a day before the India International Jewellery Show (IIJS) is scheduled to kick off in Mumbai, the Indian diamond market is showing signs that a price correction may be imminent.

Already, 1-carat goods are being offered at up to 8% lower prices than a couple of weeks ago, while prices of 0.50-carat diamonds are down by about 4%.

Prices in all other categories are also soft and while shortages haven’t vanished, there are clearly more goods visible in the market. Even the erstwhile red-hot categories, the -2 sieve size (-0.01 carat) and Stars (-0.02 carat) are now visible in inventories around the market.

Given that the IIJS is the single biggest networking and product sourcing show on the Indian industry calendar, trading sentiment is unusually subdued. Dealers hope that domestic demand will help shore up prices and generate movement. However, it is already clear that this year’s IIJS is not likely to see the strong buying witnessed in last year’s edition.

Retailers are distinctly reluctant to hold inventory and are currently only buying what they actually need.

The Indian industry does nonetheless, anticipate a decent show in terms of orders placed. Whether it will be strong enough to lift trading sentiment and prices is left to be seen.